Apex Footwear records highest profit in nine years

Apex Footwear Ltd has secured a profit of Tk 176.3 million in FY24, the highest in nine years, despite the ongoing macro-economic challenges and high inflation.

The country’s leading shoemaker and exporter made Tk 167.1 million profit in FY23.

As a result, earnings per share (EPS) stood at Tk 12.34 in FY24, up from Tk 11.69 in the year before, according to a stock exchange filing on Tuesday.

Following the earnings news, its stock price rose 1.3 per cent to close at Tk 243 on Tuesday at the Dhaka Stock Exchange.

Based on the profit, the board of directors of Apex Footwear has recommended 35 per cent cash and 10 per cent stock dividend for the shareholders for FY24.

The company said a stock dividend has been recommended in view of utilising its retained amount as paid-up capital for improving the capital adequacy of the company.

Stock dividend has been declared out of accumulated profit and stock dividend has not been declared from capital reserve or revaluation reserve.

The net operating cash flow per share, a measure of a company’s ability to generate cash from its operations, jumped to Tk 182.55 per share, up from Tk 24.75 in the previous year.

The footwear manufacturer attributed the rise in net operating cash flow per share to reduced purchases of goods and services and lower tax payments in FY24, considering the overall business climate.

The net asset value with revaluation, which refers to the excess of total assets over total liabilities, reached Tk 474.37 per share as of June this year, up from Tk 217.85 in June 2023.

The company has called an annual general meeting (AGM) for final approval of recommended dividend on November 27 through digital platform. The record date has been fixed on 22 October.

Apex Footwear Ltd was established in 1990 as an export-oriented factory. In 1993, the company was listed on the Dhaka Stock Exchange and it invested in backward linkages. By 1996, Apex had established an effluent treatment plant.

Apex is the largest shoemaker in South Asia, accounting for approximately 15 per cent of leather footwear exports from Bangladesh.

Apex exports footwear in all major export markets in Europe, North America, and Japan with more than 130 buyers globally.

In 1997, Apex launched its retail wing, Gallerie Apex, and initiated its brand building with Apex and Moochie in 2000, further strengthening its market presence. Apex adopted the factory direct model in 2006 to improve its operational efficiency.

By 2018, Apex had become the largest retail chain in Bangladesh, boasting over 250 stores nationwide, according to its website.

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